By Leena Rao
Google (GOOG) is partnering with U.S. Bancorp Community Development Corporation (USBCDC), a division of U.S. Bank; to create an $86 million Low-Income Housing Tax Credit (LIHTC) fund. According to a release issued today, the funding will be used towards the construction and operation of 480 affordable rental housing units for low income families and senior citizens in seven communities throughout the West and Midwest.
It’s unusual for a technology company to get involved with these types of loans; banks and insurance companies usually help fund these credits. While the money doesn’t cover the total cost of these developments, these tax credits help them complete a project.
Of course, Google has plenty of cash on hand and the affordable housing aspect is in line with Google’s social initiatives. As an added bonus, the company will be able to offset its federal tax liabilities over several years with these credits.
The housing complexes being built with the fund include a range of one to four-bedroom apartments, and offer a shared laundry facility and community gathering area; effectively creating 500 new units of affordable housing. The release says that Google has also recently invested in two other low-income housing projects for senior citizens, one in the San Francisco Bay community of Sunnyvale, and the other in the Los Angeles County community of Inglewood.